Union Pacific is in talks to merge with Norfolk Southern, The Wall Street Journal reported Thursday, in a deal that would shake up the railroad business in America. The Journal cited people familiar with the matter.

Merger talk is swirling around Union Pacific Corp. and Norfolk Southern Corp., in a deal that could create a railroad mega-carrier and a huge transcontinental network spanning the U.S.

Railroad operator Union Pacific is exploring a deal to buy smaller rival Norfolk Southern , the Wall Street Journal reported, in a merger that would bolster the industry leader's heft and likely draw intense regulatory scrutiny.